HomeMy WebLinkAboutAudit Committee-Agenda Packets-11/21/2023City of Colleyville Page 1
CITY OF COLLEYVILLE
AUDIT COMMITTEE AGENDA
100 Main Street, Colleyville, Texas, 76034 City
Manager's Conference Room - Third Floor
TUESDAY, NOVEMBER 21, 2023 - 5:15 PM
1.CALL TO ORDER
2.APPROVAL OF MINUTES
2a August 15, 2023
3.REGULAR AGENDA ITEMS
3a Presentation of the fourth quarter FY23 investment report
4.ADJOURNMENT
I hereby certify this agenda was posted on City Hall bulletin boards Friday, November 17,
2023 by 5:00 p.m.
Christine Loven, TRMC
City Secretary
A quorum of any Colleyville board, commission, or committee may be present at this
meeting. Any matter on this agenda may be opened for public comment and discussion at
the discretion of the governing body.
If you plan to attend this public meeting and have a disability that requires special
accommodations, please advise the City Secretary at least 48 hours in advance at
817.503.1130, and reasonable accommodations will be made to assist you.
City of Colleyville Page 1
CITY OF COLLEYVILLE
AUDIT COMMITTEE MINUTES
100 Main Street, Colleyville, Texas, 76034
City Manager's Conference Room - Third Floor
TUESDAY, AUGUST 15, 2023 - 5:00 PM
1. CALL TO ORDER
City Secretary Christine Loven called the meeting to order at 5:05 p.m. and called
the roll.
PRESENT: Committee members Scotty Richardson, Brandi Elder, and Chuck
Kelley.
ALSO PRESENT: Director of Finance Kyle Lester, Accounting Manager Karen
Hines, City Manager Jerry Ducay, Assistant City Manager Mark Wood, and City
Secretary Christine Loven.
2. APPROVAL OF MINUTES
May 2, 2023
The May 2, 2023 minutes were unanimously approved.
3. REGULAR AGENDA ITEMS
3a Discussion of the Fiscal Year September 30, 2023, audit which will be
conducted by the City's audit firm Weaver and Tidwell
Finance Director Kyle Lester stated the City had renewed the services of Weaver
and Tidwell for the 2023 audit and reviewed the timelines and new GASB
pronouncements for Fiscal Year 2023.
3b Presentation of the third quarter FY23 investment report
Finance Director Kyle Lester reviewed the third quarter investment report, the
portfolio, and stated interest earnings for the quarter were $654,679 compared to
$503,530 in the previous quarter. Director Lester noted this is reflective of a more
optimistic market, anticipated Federal Reserve action, and a few maturities coming
due in the last quarter.
There was discussion on the cash on hand, the CD investments and terms, and the
strategy to earn as strong a yield as possible, while keeping all the funds safe.
Audit Committee Minutes August 15, 2023
City of Colleyville Page 2
4. ADJOURNMENT
The meeting was adjourned at 5:22 p.m.
MINUTES APPROVED ON THE 21ST DAY OF NOVEMBER 2023.
Minutes prepared:
Christine Loven, TRMC
City Secretary
City of Colleyville Page 1
CITY OF COLLEYVILLE
AUDIT COMMITTEE BRIEFING
Agenda Number 3a Agenda Date 11/21/2023 Number
Type Regular Agenda Items
Department Finance
Title
Presentation of the fourth quarter FY23 investment report
Explanation
Cash and Cash Equivalents (local government investment pools) totaled $46,347,415 at
the end of September 2023. Colleyville’s complete portfolio was valued at $69,232,217,
and was allocated as follows:
Instrument Current as of
9/30/2023
Last Quarter as
of 6/30/2023
Cash $ 10,899,783 $ 13,394,790
LOGIC (CP Permissible) $ 2,673,686 $ 2,638,003
Other Governmental Pools $ 32,773,946 $ 34,825,162
CD’s $ 5,920,400 $ 8,274,681
CDARS $ -$ -
Agencies $ 16,964,402 $ 15,465,712
Total Cash & Investments $ 69,232,217 $ 74,598,349
Instrument Yield this quarter
LOGIC (CP Permissible) 5.43 %
Other Governmental Pools 5.275 %
CD’s 3.464 %
CDARS 0.00 %
Agencies 4.143 %
Total Consolidated Yield 4.88 %
Benchmark Yield: 5.45%
Interest earnings for the quarter were $683,782 compared to $654,679 in the previous
quarter. This is reflective of a more optimistic market, anticipated Federal Reserve
City of Colleyville Page 2
Audit Committee Agenda Briefing 3a
action, and a few maturities coming due in the last quarter. Staff will continue to
examine cash-flow needs and place our resources in instruments with an emphasis on
keeping these funds safe while earning as strong a yield as possible.
Attachments
1.Investment Report - September 2023
2.September 2023 Presentation
9/30/2023
City of Colleyville, TX
Quarterly Investment Report
Quarterly Investment Report City of Colleyville, TX 9/30/2023
Weighted
6/30/2023 9/30/2023 Change Maturity
Cash 13,394,790$ 10,899,783$ (2,495,007)$ Liquid
Sweep Account -$ -$ -$ Liquid
LOGIC (CP Permiss.)2,638,003$ 2,673,686$ 35,683$ Liquid
Other Gov't Pools 34,825,162$ 32,773,946$ (2,051,216)$ Liquid
Subtotal 50,857,955$ 46,347,415$ (4,510,540)$
CD's 8,274,681$ 5,920,400$ (2,354,281)$ 232 days
CDARS -$ -$ -$ 0 days
Agencies 15,465,712$ 16,964,402$ 1,498,690$ 208 days
Subtotal 23,740,394$ 22,884,802$ (855,591)$ 214 days
Total Resources 74,598,349$ 69,232,217$ (5,366,132)$
Investments on the move…
Criteria
Met?
Policy Max 6/30/2023 9/30/2023
U.S. Treasuries 100%0%0%
U.S. Agencies 75%21%25%
CD's 75%11%9%
Local Gov't Pools 75%50%51%
CDARs 75%0%0%
Tri-Pty Repurchase 75%0%0%
Cash/Sweep N/A 18%16%
The fourth quarter of FY23 showed a predictable decrease in total resources from June,as the bulk of
the City's revenue had been received earlier in the year and payroll finished for the year. Importantly,
you can note a continued shift from actual cash resources to agency investments as cash resources have
allowed.In total, the City had $1.75m in CD’s mature with a weighted average maturity of 310 days and
a consolidated return of 3.78%. These maturities and other available cash enabled staff to invest almost
$3.5m total in two CD’s and two lucrative U.S. Government-backed agency notes for an average annual
return of 5.36% and a weighted average maturity of almost 290 days. With a total of $5.3 million
maturing in calendar 2023, the City will have ample opportunity to reach back out to the market. These
moves will continue to pull the City’s consolidated return closer to our benchmark.
Diversity Snapshot vs. Policy Requirements
0%0%10%SEC Registered, No-
Load Mutual Funds
Where is Colleyville's cash?
Cash/
Equivalents
Bonds/CDs/Ag
encies
2
Quarterly Investment Report City of Colleyville, TX 9/30/2023
Benchmark =13-Week Treasury
Before the recent downturn Colleyville's investment returns had been climbing steadily since 2016,
primary due to to more active investment practices. Although we are coming out of a down-cycle in
terms of returns, until the last year we've still been able to stay ahead of our 13-week treasury
benchmark.We will continue to see the City's returns increase in subsequent reports. Most importantly,
Colleyville's funds are safe. Our highest value is placed on maintaining a low risk in order to ensure the
safety and liquidity of the funds entrusted to us.
How do our returns compare?
The City's total consolidated return was 4.88% as of September 30, 2023, representing a continued
increase from a consolidated return of 4.58% last quarter. With the Federal Reserve’s high interbank
borrowing rate, this will be the sixth quarter our return lags behind the 13-week treasury rate, as pool
rates are still catching up and the City is allowing it’s older, lower interest-bearing investments to
mature. This tends to be a characteristic of a starkly rising rate market for portfolios that hold their
investments to maturity. As of the date of this report, it is not uncommon to see shorter-term securities
(1 - 3 years) pushing into the 530-560 basis point range and holding steady. As older and weaker
investments mature, staff will continue to take advantage of higher market rates. Funds dedicated to
capital improvement projects will need to remain readily available while excess operating cash can be
invested in shorter-term instruments with favorably returns. The City is expected to remain in a lower
cash position through the first quarter of fiscal year 2024, but that will reverse once property tax
receipts hit in December/January.
5.45%
4.88%5.28%
3.46%
4.14%
-0.50%
0.50%
1.50%
2.50%
3.50%
4.50%
5.50%
13-Wk T Consolidated Return Bank Pools CD's Agencies
Second Quarter, FY23
$-
$200,000
$400,000
$600,000
$800,000
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Historical Return
Return Rate Interest Earned
3
5.54%
Quarterly Investment Report City of Colleyville, TX 9/30/2023
6/30/2023 9/30/2022
Thru Thru
9/30/2023 9/30/2023
As the graph above shows,the City's portfolio makeup has changed substantially over the years.For
one,our change in depository banks led staff to shy away from the sweep account instrument that had
been heavily used with Wells Fargo.As a result,cash has been moved from our bank and into other
instruments more frequently.Certificates of Deposit were particularly attractive during the pandemic
years,with agencies also resurging within the last twelve months.While money stored in government
pools isn’t earning as high as our treasury benchmark as of late,it does have the benefit of a decent
return market while also being considered "liquid",as the City can withdraw its funds within 24 hours in
most cases.Regardless,all recent investments that have been placed recently have well outpaced our 13-
week treasury benchmark and mature within 1-2 years.
What have we earned the past three months? For the past year?
$683,782; 4.88%$546,742; 4.28%
Current Total Quarterly Average
Compared to the average quarterly return for the past 12 months,the most recent quarter is showing a
significant increase in the rate of return,led by recent maturities andreinvestments placed in the past few
months.As noted,fixed-income rates have climbed amidst the actions from the Federal Reserve and
appear to be sitting well above the 500-basis point range pretty consistently.As noted previously,staff
has been able to capitalize on these higher yields,although the City's liquidity needs to remain relatively
high at this time.Federal agency debt has been particularly attractive as of late.As always,we will need
to balance investments with our robust 5-year capital improvement plan.Staff will always monitor the
market and manage Colleyville's portfolio with emphasis on diversity and cash-flow needs.
How has our portfolio changed over time?
13%20%20%16%
71%53%48%51%
21%
15%9%
2%0%
0%
17%25%
2021 2022 2023 2024
PORTFOLIO COMPOSITION
Bank Pools CD's CDARS Agencies
4
Quarterly Investment Report City of Colleyville, TX 9/30/2023
For any questions or comments on this report, please contact Also included:
Kyle Lester, CGFO Maturities/Purchases
City of Colleyville, TX Investment Listing
Finance Director 817-503-1014 Mark-to-Market
klester@colleyville.com
Signed:
Per State law, Colleyville is only permitted to invest in certain fixed income securities, whos
performance ties closely with the Federal Funds rate.As the chart above shows, the rates of our 13-
week treasury benchmark as well as our pools tend to move in lock-step with the Federal Reserve's rate
actions. This rate was cut five times since the beginning of the pandemic but inflation and recessionary
fears have prompted the Federal Reserve to drastically increase it,most recently by a quarter of a
percent to between 5% and 5.25%. With inflationary pressures continuing and a potential (mild)
recession coming later in 2023, further rate hikes are decreasing in probability,at least at their previous
levels. Regardless,it is possible for the interbank borrowing rate to reach a height not seen since mid-
2007. Staff will continue to monitor this metric as the year continues.
This investment report is in compliance with the Public Funds Investment Act as well as the City of
Colleyville's investment policy and procedures.
What influences our rate of return?
-
1.00
2.00
3.00
4.00
5.00
6.00
Influence of Federal Funds Rate on Fixed Income Market
13-Wk Coupon Fed Funds Rate Avg Pools
5
Quarterly Investment Report City of Colleyville, TX 9/30/2023
What has matured in the last 12 months?
Length
Brokered CD (FDIC #33954)256,586$ 10/12/2022 1.81 0.20%927$
Brokered CD (FDIC #4297)256,481$ 10/12/2022 1.81 0.20%926$
Brokered CD (NCUA #17587)247,000$ 10/28/2022 2.00 0.25%1,233$
Brokered CD (FDIC #16022)247,000$ 11/9/2022 2.00 0.20%988$
Brokered CD (FDIC #34953)249,000$ 11/16/2022 2.00 0.20%996$
Brokered CD (FDIC #35141)249,000$ 11/21/2022 2.00 0.20%997$
Brokered CD (FDIC #8120)247,000$ 12/23/2022 2.00 0.20%988$
Brokered CD (NCUA #619)246,000$ 2/13/2023 1.98 0.15%730$
Brokered CD (FDIC #58979)246,000$ 2/21/2023 2.01 0.15%740$
Brokered CD (FDIC #19008)249,000$ 3/30/2023 2.00 0.20%996$
Brokered CD (FDIC #57742)249,000$ 3/30/2023 2.00 0.20%996$
Brokered CD (FDIC #57873)249,000$ 3/31/2023 2.00 0.15%747$
Brokered CD (FDIC #628)249,000$ 3/31/2023 1.00 1.00%2,490$
Brokered CD (FDIC #14029)250,000$ 5/15/2023 0.50 4.40%5,485$
Brokered CD (FDIC #12858)248,000$ 6/29/2023 2.00 0.15%744$
Brokered CD (FDIC #68722)250,000$ 6/29/2023 1.00 2.95%7,375$
Brokered CD (FDIC #33539)249,000$ 6/30/2023 2.00 0.25%1,245$
Brokered CD (FDIC #66364)250,000$ 7/13/2023 1.00 3.00%7,500$
FHLB Note (3130ASHY8)500,000$ 7/14/2023 1.00 3.25%16,250$
FFCB Note (3133ENV98)500,000$ 7/26/2023 0.72 4.67%16,889$
Brokered CD (FDIC #33124)250,000$ 7/28/2023 2.03 0.25%1,271$
Brokered CD (FDIC #34395)250,000$ 8/10/2023 0.50 4.70%5,827$
Brokered CD (FDIC #33849)250,000$ 8/10/2023 0.50 4.70%5,827$
Total Matured 6,237,066$ 1.58%82,166$
APPENDIX
Maturity
DatePurch Price
Yield to
Maturity Total ReturnInvestment
6
Quarterly Investment Report City of Colleyville, TX 9/30/2023
What have we purchased within the last 12 months?
FHLB Note (3130ATE37)1,500,000$ 9/29/2022 9/29/2023 4.15%62,250$
FHLB Note (3130ATKC0)1,000,000$ 10/3/2022 1/26/2024 4.63%60,822$
FHLB Note (3130ATK63)1,000,000$ 10/3/2022 7/25/2024 4.88%88,284$
Brokered CD (FDIC #32992)249,000$ 10/14/2022 10/14/2024 4.40%21,942$
Brokered CD (FDIC #29546)249,000$ 10/21/2022 10/21/2024 4.40%21,942$
FFCB Note (3133ENV98)500,000$ 11/4/2022 7/26/2023 4.67%16,889$
Brokered CD (FDIC #57512)250,000$ 11/14/2022 5/15/2023 4.40%5,485$
FHLMC Note (3134GX7F5)500,000$ 11/28/2022 5/23/2024 5.15%38,237$
Brokered CD (NCUA #4584)250,000$ 12/16/2022 12/18/2023 5.10%12,820$
Brokered CD (FDIC #61800)248,000$ 12/19/2022 10/19/2023 4.85%10,018$
Brokered CD (NCUA #1040)250,000$ 12/22/2022 12/23/2024 5.20%26,071$
FNMA Note (3135GADK4)1,000,600$ 12/28/2022 12/27/2023 5.00%49,893$
Brokered CD (NCUA #857)250,000$ 2/8/2023 2/8/2024 5.00%12,500$
Brokered CD (FDIC #34395)250,000$ 2/10/2023 8/10/2023 4.70%5,827$
Brokered CD (FDIC #33849)250,000$ 2/10/2023 8/10/2023 4.70%5,827$
FHLB Note (3130AURL0)1,000,000$ 2/13/2023 2/13/2024 4.80%48,000$
FHLB Note (3130AUZ23 1,000,000$ 3/1/2023 3/1/2024 5.25%52,644$
FHLB Note (3130AV3D2)1,000,000$ 3/6/2023 9/6/2024 5.45%82,123$
Brokered CD (FDIC #24045)243,000$ 5/19/2023 11/19/2024 5.20%19,041$
FHLMC Note (3134GYS52)500,350$ 5/22/2023 5/16/2025 5.35%53,171$
Brokered CD (FDIC #26610)237,000$ 5/26/2023 5/24/2024 5.20%12,290$
Brokered CD (FDIC #66399)248,000$ 5/26/2023 7/26/2024 5.15%14,941$
Brokered CD (FDIC #24923)248,000$ 5/26/2023 11/26/2024 5.15%19,245$
FHLB Note (3130AWAK6)1,000,000$ 5/30/2023 5/28/2025 5.51%110,049$
FHLB Note (3130AQ3X9)1,499,400$ 8/10/2023 4/26/2024 5.34%57,035$
FHLB Note (3130AVT44)999,290$ 9/8/2023 5/22/2024 5.40%37,995$
Simmons Bank CD 700,000$ 9/12/2023 9/12/2024 5.20%36,500$
Brokered CD (FDIC #60801)248,000$ 9/13/2023 9/13/2024 5.75%14,299$
Total Purchased 16,669,640$ 5.01%996,139$
Weighted Average Maturity 433 days
APPENDIX
Yield to
MaturityInvestment Total ReturnPurch Price
Purchase
Date
Maturity
Date
7
Quarterly Investment Report City of Colleyville, TX 9/30/2023
Full Investment Listing
Brokered CD (FDIC/NCUA #61800)248,000$ 12/19/2022 10/19/2023 4.850%10,018$
Brokered CD (FDIC/NCUA #857)250,000$ 2/8/2023 2/8/2024 5.000%12,500$
Brokered CD (FDIC/NCUA #66399)248,000$ 5/26/2023 7/26/2024 5.100%14,796$
Brokered CD (FDIC/NCUA #24045)243,000$ 5/19/2023 11/19/2024 5.10%18,674$
Brokered CD (FDIC/NCUA #227)249,000$ 9/24/2021 3/29/2024 0.40%2,502$
Brokered CD (FDIC/NCUA #34404)249,000$ 9/24/2021 9/29/2023 0.30%1,504$
Brokered CD (FDIC/NCUA #60801)248,000$ 9/13/2023 9/13/2024 5.75%14,299$
Brokered CD (FDIC/NCUA #26610)237,000$ 5/26/2023 5/24/2024 5.10%12,054$
Brokered CD (FDIC/NCUA #4585)250,000$ 12/16/2022 12/18/2023 5.10%12,820$
Brokered CD (FDIC/NCUA #32992)249,000$ 10/14/2022 10/14/2024 4.400%21,942$
Simmons Jumbo CD 700,000$ 9/12/2023 9/12/2024 5.20%36,500$
Frost Bank Jumbo CD 1,502,400$ 2/25/2022 2/25/2024 1.51%45,372$
Brokered CD (FDIC/NCUA #27471)250,000$ 3/2/2022 3/4/2024 1.60%8,033$
Brokered CD (FDIC/NCUA #32574)250,000$ 3/9/2022 3/6/2024 1.50%7,479$
Brokered CD (FDIC/NCUA #29546)249,000$ 10/21/2022 10/21/2024 4.40%21,942$
Brokered CD (FDIC/NCUA #66399)248,000$ 5/26/2023 11/26/2024 5.20%19,432$
Brokered CD (FDIC/NCUA #1040)250,000$ 12/22/2022 12/23/2024 5.20%26,071$
FHLB Note (3130AURL0)1,000,000$ 2/13/2023 2/13/2024 4.80%48,000$
FHLB Note (3130AUZ23 1,000,000$ 3/1/2023 3/1/2024 5.25%52,644$
FHLB Note (3130AV3D2)1,000,000$ 3/6/2023 9/6/2024 5.45%82,123$
FHLMC Note (3134GYS52)500,350$ 5/22/2023 5/16/2025 5.35%53,171$
FNMA Note (3135GADK4)1,000,300$ 12/28/2022 12/27/2023 5.00%49,878$
FHLB Note (3130ATKC0)1,000,000$ 10/3/2022 1/26/2024 4.63%60,822$
FHLB Note (3130AQ3X9)2,000,062$ 12/22/2021 12/22/2023 0.75%30,001$
FHLB Note (3130ATE37)1,500,000$ 9/29/2022 9/29/2023 4.15%62,250$
FHLB Note (3130AVJN3)1,499,400$ 8/10/2023 4/26/2024 5.34%57,035$
FHLB Note (3130ARLC3)1,000,000$ 4/25/2022 4/25/2024 2.63%52,572$
FHLB Note (3130ARP54)450,000$ 4/29/2022 4/29/2024 2.70%24,333$
FHLB Note (3131ARVT5)1,000,000$ 5/17/2022 5/17/2024 3.00%60,082$
FHLB Note (3130ARV65)515,000$ 5/20/2022 5/17/2024 3.00%30,815$
FHLB Note (3130AWAK6)1,000,000$ 5/30/2023 5/28/2025 5.51%110,049$
FHLB Note (3130AVT44)999,290$ 9/8/2023 5/22/2024 5.40%37,995$
FHLMC Note (3134GX7F5)500,000$ 11/28/2022 5/23/2024 5.15%38,237$
FHLB Note (3130ATK63)1,000,000$ 10/3/2022 7/25/2024 4.88%88,284$
Total 22,884,802$ 3.97%1,224,231$
Weighted Average Maturity 214 days
Total Return
Purchase
Date
Yield to
MaturityInvestmentPurch Price
Maturity
Date
APPENDIX
8
Quarterly Investment Report City of Colleyville, TX 9/30/2023
Mark-to-Market
6/30/2023 9/30/2023
Market Value Market Value
Brokered CD (FDIC/NCUA #61800)248,000$ 247,665$ 247,928$ (72)$
Brokered CD (FDIC/NCUA #857)250,000$ 249,520$ 249,603$ (398)$
Brokered CD (FDIC/NCUA #66399)248,000$ 247,154$ 247,038$ (962)$
Brokered CD (FDIC/NCUA #24045)243,000$ 242,150$ 241,700$ (1,300)$
Brokered CD (FDIC/NCUA #227)249,000$ 239,986$ 242,807$ (6,193)$
Brokered CD (FDIC/NCUA #34404)249,000$ 245,892$ 248,031$ (969)$
Brokered CD (FDIC/NCUA #60801)248,000$ N/A 248,154$ 154$
Brokered CD (FDIC/NCUA #26610)237,000$ 236,467$ 236,325$ (675)$
Brokered CD (FDIC/NCUA #4585)250,000$ 249,770$ 249,813$ (188)$
Brokered CD (FDIC/NCUA #32992)249,000$ 245,728$ 245,768$ (3,232)$
Simmons Jumbo CD 700,000$ N/A 700,000$ -$
Frost Bank Jumbo CD 1,502,400$ 1,502,400$ 1,500,000$ (2,400)$
Brokered CD (FDIC/NCUA #27471)250,000$ 243,805$ 245,213$ (4,787)$
Brokered CD (FDIC/NCUA #32574)250,000$ 243,536$ 245,736$ (4,264)$
Brokered CD (FDIC/NCUA #29546)249,000$ 245,671$ 245,698$ (3,302)$
Brokered CD (FDIC/NCUA #66399)248,000$ 247,154$ 246,527$ (1,473)$
Brokered CD (FDIC/NCUA #1040)250,000$ 249,108$ 248,600$ (1,400)$
FHLB Note (3130AURL0)1,000,000$ 995,780$ 997,260$ (2,740)$
FHLB Note (3130AUZ23 1,000,000$ 996,750$ 998,750$ (1,250)$
FHLB Note (3130AV3D2)1,000,000$ 994,450$ 996,260$ (3,740)$
FHLMC Note (3134GYS52)500,350$ 496,215$ 495,970$ (4,380)$
FNMA Note (3135GADK4)1,000,300$ 997,171$ 998,615$ (1,685)$
FHLB Note (3130ATKC0)1,000,000$ 993,960$ 997,200$ (2,800)$
FHLB Note (3130AQ3X9)2,000,062$ 1,954,821$ 1,979,260$ (20,802)$
FHLB Note (3130ATE37)1,500,000$ 1,494,930$ 1,500,000$ -$
FHLB Note (3130AVJN3)1,499,400$ N/A 1,499,130$ (270)$
FHLB Note (3130ARLC3)1,000,000$ 976,320$ 983,510$ (16,490)$
FHLB Note (3130ARP54)450,000$ 439,488$ 442,620$ (7,380)$
FHLB Note (3131ARVT5)1,000,000$ 503,634$ 984,070$ (15,930)$
FHLB Note (3130ARV65)515,000$ 503,634$ 506,842$ (8,158)$
FHLB Note (3130AWAK6)1,000,000$ 993,650$ 993,310$ (6,690)$
FHLB Note (3130AVT44)999,290$ N/A 997,302$ (1,988)$
FHLMC Note (3134GX7F5)500,000$ 496,650$ 498,140$ (1,860)$
FHLB Note (3130ATK63)1,000,000$ 991,550$ 993,440$ (6,560)$
Total (134,183)$ 22,884,802 $ 18,765,009 $ 22,750,620 $
Investment Initial Value
APPENDIX
Unrealized
Gain/(Loss) since
Purchase
9
Quarterly Investment Report City of Colleyville, TX 9/30/2023
Note about mark-to-market:This analysis takes a snapshot look at each of the securities Colleyville
holds and values them based on what the market would pay for them today.An unrealized gain in
market value would indicate the security's value has gone up since the last mark-to-market,and an
unrealized loss would indicate the value has gone down.However,the City of Colleyville's strategy
is to buy securities and hold them to maturity to receive the agreed-upon interest payments (known
as "buy and hold").Therefore,any change in market value will not be realized by the City.The
primary purpose of this analysis,as required by the Public Funds Investment Act,is to demonstrate
the current market value of the City's portfolio should we need to liquidate it in the case of an
emergency.This scenario is extremely unlikely,given the prudence Colleyville's leaders have
shown in their financial decisions.It is important to remember this when looking at our quarterly
mark-to-market analysis.
Predictably,the fixed income market's recent turn upward would lead most of the City's securities,
purchased at lower yields,to be uncompetitive and therefore not particularly marketable as
secondary securities.This means the City would likely realize a loss in the event any security needs
to be liquidated. However, as stated above, this is not a likely scenario.
APPENDIX
10
Quarterly Investment Report
4th Q, 2023
November 21, 2023
As required by the Public Funds Investment Act, §2256.023
Cash Position Overview
16%
51%
9%
24%
Cash/Sweep Pools CD/CDARS Agencies
Yield Curve
10/23/2023
10/23/2022
10/23/2021
6%
5%
4%
3%
2%
1%
0%
1mo | 2mo | 3mo | 4mo | 6mo | 1yr | 2yr | 3yr | 5yr | 7yr | 10yr | 20yr | 30yr
13-Wk Consolidated Bank Pools CD's Agencies
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
RETURN COMPARISON
6/30/2023 9/30/2023
Return Summary
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
6/30/2023:
4.58%
9/30/2023:
4.88%
Rate of Return
Return Summary
9-201711-20171-20183-20185-20187-20189-201811-20181-20193-20195-20197-20199-201911-20191-20203-20205-20207-20209-202011-20201-20213-20215-20217-20219-202111-20211-20223-20225-20227-20229-202211-20221-20233-20235-20237-20239-20230.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Pools vs. Benchmark vs. Investment Decisions
Investments Pools 13-Wk
Return Summary
10/30/201510/30/201610/30/201710/30/201810/30/201910/30/202010/30/202110/30/2022 -
1.00
2.00
3.00
4.00
5.00
6.00
Influence of Federal Funds Rate on Fixed
Income Market
13-Wk Coupon Fed Funds Rate Avg Pools 12/1/20203/1/20216/1/20219/1/202112/1/20213/1/20226/1/20229/1/202212/1/20223/1/20236/1/20239/1/20230.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
$ -
$ 100,000
$ 200,000
$ 300,000
$ 400,000
$ 500,000
$ 600,000
$ 700,000
$ 800,000
Historical Return
Return Rate Interest Earned
Mark-to-Market – What is our portfolio worth?
Shows portfolio value vs. initial investment
However…
•We hold our investments until maturity
(“buy and hold” strategy)
•Gains and losses shown are unrealized
Valuation
Period
Value at
Purchase
Revised
Value
Total Gain
(loss) on
Purchase
Price
9/30/2022 $ 20,226,953 $ 19,943,146 ($ 283,807)
12/31/2022 $ 19,225,992 $ 18,953,072 ($ 272,920)
3/31/2023 $ 22,496,998 $ 22,301,979 ($195,019)
6/30/2023 $ 23,740,756 $ 23,536,813 ($203,943)
9/30/2023 $ 22,884,802 $22,750,620 ($134,183)9/1/201912/1/20193/1/20206/1/20209/1/202012/1/20203/1/20216/1/20219/1/202112/1/20213/1/20226/1/20229/1/202212/1/20223/1/20236/1/20239/1/20230.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
$ -
$ 50,000
$ 100,000
$ 150,000
$ (50,000)
$ (100,000)
$ (150,000)
$ (200,000)
$ (250,000)
$ (300,000)
$ (350,000)
MARK TO MARKET VS. MARKET
INCREASES
M2M 13Wk
Questions/Comments